"Ok after lots of lube and repeated hits with a hammer i realized how stuck my Tcase shift rod really was and decided to pull it out, disassemble it and figure out what was wrong. I could not push it down to get it to shift into 4low. The middle rod was rusted stuck inside.
Was not a hard job and can now shift using two fingers..."
by Ford in Bronco Workshop Manual;
NOTE: Remove the gearshift lever knob (7213) only if the gearshift lever knob, gearshift lever boot (7277) or shift control selector lever is being replaced.
Shift transfer case (7A195) into 2H.
Raise vehicle on hoist and position suitable safety stands under vehicle.
Loosen (do not remove) the nut retaining the shift handle to the gearshift lever (7210). Remove the shift handle from the gearshift lever.
Remove the vent hose from the notch in the detent plate. CAUTION: When removing the control rod from the gearshift lever, do so very gently so as not to damage the shift control selector lever.
Remove the control rod from the gearshift lever.
Loosen (do not remove) the large pivot bolt holding the gearshift lever to the detent plate.
Swing the gearshift lever out of the way and remove the two bolts retaining the detent plate to the extension housing (7A039). Remove the entire gearshift lever from the vehicle.
NOTE: Prior to installation, the gearshift lever knob must be at room temperature and may be warmed to 60°C-82°C (140°F-180°F) as an assembly aid.
Prior to installing the gearshift lever, be sure the transfer case link is in the 2H position (pointing upward).
Install the two bolts to retain the gearshift lever to the extension housing and tighten to 96-122 Nm (71-90 lb-ft). Refer to the following illustration for bolt hole application.
Attach the control rod to the gearshift lever.
Tighten the large pivot bolt to 92-125 Nm (68-92 lb-ft).
Attach the vent hose into the notch in the detent plate so the white mark is flush to the outside surface of the plate.
Install the shift lever into the gearshift lever. Tighten the retaining nut to 27-38 Nm (20-28 lb-ft).
NOTE: Shift pattern must be parallel within ±10 degrees of vehicle centerline.
Check transfer case for proper shifting and operation.
Remove safety stands and lower vehicle.
1356 Manual Shift Wear; "...Manually shifted units usually exhibit wear on the selector shaft in two areas (figure 5). Shaft wear in any form will make the unit disengage or have very sloppy shifting. The star shaped end of the shaft where it mates with the shift cam is also prone to wear. Borg Warner released an updated shift cam with an Allen screw to tighten up the fit and retain the manual lever. Look at the section of the manual lever that rides in the case, which is also subject to wear from dirt and two dissimilar metals in close contact...Always inspect the bore of the case for excessive wear. Figure 6 shows the bore is worn over size and will no longer hold the selector shaft in position. The only way to fix this is to do some machining and sleeve the bore, or to replace the case altogether..." (pics are thumbnails)